Model N Rising: Q4, Year Projected Losses Worse than Consensus

By Tiernan Ray

Update: The stock has made a quick about-face here, now rising 33 cents, or 3.4%, to $10.

Life sciences cloud software vendor Model N (MODN) this afternoon reported fiscal Q3 revenue in line with analysts’ expectations, and a slightly larger-than-expected net loss per share, and forecast this quarter’s revenue below consensus, and the full-year profit lower as well.

Revenue in the three months ended in June fell 29%, year over year, to $19.3 million, yielding a net loss of 16 cents.

Analysts had been modeling $19.3 million and a 15-cent loss per share.

CEO Zack Rinat said the company “made continued progress across a number of strategic initiatives during the quarter,” and said he was “pleased with the improvements we have made in both consistency of our business and our sales execution throughout the year.

For the current quarter, the company sees revenue of $19.5 million to $20 million, and a net loss of 16 cents to 18 cents per share. That is below analysts’ estimate for $19.9 million and a 14-cent loss per share.

F0r the full year, the company sees revenue of $81 million to $81.5 million, and a net loss of 45 cents to 47 cents per share. That compares to consensus for $81.25 million and a 41-cent loss per share.

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.